Depending on the nature of your friend's disability, obtaining SSDI can be difficult, time consuming and frustrating. I've been told that 85% of the applicants are denied on their first try. However, I've also been told that 85% of those originally denied are approved on appeal. Persistence pays off in this matter. Benefits for People with Disabilities
Tax treatment of disability benefits will depend on their source, and might depend on other details of your friend's finances. • SSDI: From nolo.com: "Social Security disability benefits (SSDI) can be subject to tax, but most people do not end up paying taxes on them because they don't have much other income. About a third of Social Security disability recipients, however, do pay some taxes, because of their spouse's income or other household income." • SSI: From irs.gov: "upplemental security income (SSI) payments […] are not taxable" • Private disability benefits: From hcvadvocate.org: "For private disability benefits, the IRS looks to tax either the premiums paid for the disability insurance or the benefits paid to the claimant, but not both."
A 52 year old acquaintance is: - morbidly obese (over 450 pounds, but less than 500 pounds) - has lower back problems - and also has a foot problem He receives 100% disability - tax free.
God bless that guy. It must be really hard to get along, let alone work. Do you happen to know how much he gets a month?
I've wondered that myself. For 2015, the average SSDI benefit amount is $1,165 per month, but it can be up to $2,663. Calculation: How Much in Social Security Disability (SSDI) Benefits Can You Get? | Nolo.com
me again is rioght, there are no federal taxes on disability, but ask your friend if he/she has to pay state or local income taxes, he might owe taxes on state or local (i owe local taxes on my ssd).
uh, huh! IT TOOK MY DAD 2 YRS TO GET SSD ON MY BEHALF ... but then you usually get that 2 yrs worth of benefits for your first check from ssa
Oh, by the way, people! even though i am a double mba, i am no tax professional, so contact your friendly neighboirhood tax professional
:shock: Aw, shuckins! Abner, I've watched you evolve from newbie to very valuable senior member. So you're a good man too.